Prediction #1 (of 2) from Frost & Sullivan’s John Raspin: Oil Companies May Buy Electric Utilities
Posted: July 24, 2007
As director of Frost & Sullivan’s energy and environmental practice, John Raspin spends a lot of time thinking about the future. One thing he has been thinking about recently is the possibility that major oil companies will decide to buy electric utilities in order to maintain their control over the distribution and marketing of transportation fuel when plug-in electric vehicles start arriving in dealers’ showrooms in a couple more years.
“As a strategy (for oil companies), it works quite well,” Raspin told EnergyTechStocks.com from his London office. “I can see a real opportunity there” for the oil firms.
Raspin quickly added that he hasn’t yet seen any evidence that an oil company is actually considering such an acquisition. But with many nations’ growing emphasis on energy security and environmental protection, he and others wouldn’t be surprised if so-called plug-in electric hybrid vehicles (PHEVs) catch on with the public when they become available. And when that happens, Raspin said, oil companies will have to respond or risk losing control of the transportation fuel distribution business.
As has been reported on EnergyTechStocks.com and elsewhere, a plug-in electric vehicle will be able to be fuelled simply by plugging it in to an ordinary electrical socket. The cost per equivalent gallon should be a lot less than gasoline. A number of car manufacturers are working on plug-in models, including General Motors, DaimlerChrysler, Ford, Toyota and Honda.